The figure above shows the demand and cost curves for a single-price monopoly. What economic profit does this firm make?
A) zero
B) $600
C) $400
D) $200
D
You might also like to view...
A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill. If the market price of grills is $300, given the scenario described, the total consumer surplus would be:
A. $200. B. $170. C. $1,070. D. None of these is true.
While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerable higher salary, you stopped purchasing hot dogs. For you, hot dogs are
a. Complementary good b. Normal good c. Inferior good d. Substitute good
As all available statistics show us, because the average annual population growth is 1.4 percent higher in developing countries than in industrial nations, economic growth is lower in low-income countries
a. True b. False Indicate whether the statement is true or false
Indifference curves tend to be bowed inward because of diminishing
a. marginal rates of substitution. b. demand for the good as prices rise. c. income. d. Both a and b are correct.